North Carolina Down Payment Support Programs

Payments Gateway - These programs are the Down Payment Assistance Program along with the Mortgage Credit Certificate.

If you qualify for one of these plans and you purchase a house between December 1, 2009 and January 1, 2009, it is also possible to be eligible for the $8,000 tax credit merely enacted into law in the Federal Economic Stimulus Plan.

First, who is a First Time Home Buyer? A First Time Home Buyer is someone who has not owned a home in the previous three years. This is the same qualifying definition.

The MCC takes this a step farther.

You'll be able to claim 20% of the interest you pay on your mortgage as a credit in your federal income taxes, should you are eligible for the MCC. You can save around $2,000 on your taxes.

Should you qualify for the MCC, for 2009, you will be able to combine this with the $8,000 tax credit. This would reduce the tax liability of a buyer's by $10,000.

Who Qualifies for an MCC?

Household income means the “gross income of the mortgagor and every other person expected to reside in the dwelling who's 18 years old or older.”

House price limitations that apply in Durham Orange and Chatham Counties and the income are given below.

MCC Income Limits 1 Person $61,500 2 Individuals $61,500 3 Persons $70,500 4 Persons $70,500

MCC Sales Price Limits New Home $220,000 Existing Dwelling $210,000

Home buyers that want help with their down payment and closing costs might be able to get down payment assistance - or, to put it differently, interest-free, deferred second mortgages up to $8,000. The purchaser only has to pay $1,000 of their own funds and the load would pay up to $8,000 of the remaining balance.

This program has more stringent income limitations than the MCC plan summarized above. Like the MCC application, it can be utilized along with the new $8,000 tax credit on home purchases between January 1, 2009 and December 1, 2009. The down payment help, however, can not be used along together with the MCC. That is an either or situation.

House price limits that apply in Durham, Orange and Chatham Counties and the income are listed below.

Down Payment Assistance Income Limits

1 Person $39,950 2 Individuals $45,650 3 Men $51,350 4 Men $57,050

Down Payment Support Sales Cost Limits New Home $210,000 Existing House $210,000